© 2014 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Expense Ratio

Definition:

The expense ratio of a fund is a fraction. In the numerator are the fees charged to the investors and in the denominator are the total assets under management. A high expense ratio means that the investor is being charged a lot for services rendered - so the performance better be really good.

Advertisement